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Is Bitcoin cheating the divorce property division system?


Oftentimes, divorce breaks down not only a marriage, but the existing family as well. While this can be emotionally devastating for all parties involved, divorcing individuals also handle separation of assets. The financial burden related to property division can be crippling, but managing finances during a divorce is critical.

In light of the increased divorce rate in America, prenuptial agreements have gained popularity as a means of protecting one's assets in the event of divorce. However, couples may still find it uncomfortable to talk about prenuptial agreements prior to marriage while still deep in love and looking to be eternally bound in matrimony. However, those who fail to sign a prenuptial or postnuptial agreement should be aware of new technologies that are being used to hide marital assets. One such new technology is Bitcoin, a digital currency where no physical cash is required for monetary transactions. Since Bitcoin is a digital currency that does not depend on bank or government action, monetary transactions can be anonymous.

Many corporations and companies now accept Bitcoin transactions. The procedure is legal and not cumbersome. However, in the case of an ensuing divorce proceeding, a declaration still has to be made regarding any Bitcoin account and investments by either spouse, as it is still considered an asset.

Division of assets is one of the major sore points in divorce proceedings, especially if one spouse is the "breadwinner" while the other is the "homemaker." It thus becomes important to make efforts to protect one's assets in case of an impending divorce and discover other assets that may be hidden. One might consider consulting a Rhode Island legal professional on how to best protect their hard earned assets from being taken away amidst a bitter divorce proceeding and how to find property that may be inappropriately hidden in an effort to keep it from division.

Source: Daily Finance, "Bitcoin: The New, High-Tech Way to Hide Assets in a Divorce", Robert Pagliarini, June 16, 2014

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